Industrial Ethernet Market Continues Rapid Growth Through 2026

The global industrial Ethernet market has become more widespread as more companies prioritize efficient and fast data communication, especially in the manufacturing world. In fact, the industrial Ethernet market was valued at $9.2 billion in 2020 and is projected to reach $13.7 billion by 2026 at a Compound Annual Growth Rate (CAGR) of 7.3% from 2021 according to the release of the report “Industrial Ethernet Market With COVID-19 Impact Analysis by Offering, Protocol, End-use Industry And Region - Global Forecast to 2026"

Growing Demand in Industrial Ethernet Products

The growth comes as a result of a growing demand for scalable, fast, and interoperable communication protocols, increasing initiatives promoting the implementation of industrial automation, and increased popularity in smart vehicles. Plus, the adoption of 5G has acted as a growth opportunity for key market players.

Most of the industrial Ethernet market is made up of hardware, instead of software and services. Products like IP phones and PCs are connected to the internet for rapid communication and machine-to-machine communication enables fast and efficient plant operation.

Automotive Technology Relies on Industrial Ethernet

Industrial Ethernet products accelerate operations and ensure higher reliability across various industries, such as automotive, transportation, aerospace, pharmaceuticals, and food and beverage. However, automotive is one of the largest end-use industries of the industrial Ethernet market. In fact, the automotive and transportation end-user industry accounted for the largest share of the industrial Ethernet market in 2020.  The automotive industry is expected to continue this growth trend due to the growing demand for advanced automation in vehicle automobile manufacturing plants worldwide.

Manufacturing Adapts to Digital and IIoT During Pandemic

Another contributor to Industrial Ethernet growth is the impact of the COVID-19 pandemic. Manufacturers have had to find new approaches to production and assembly in order to meet changing customer demands. In some instances, companies were forced to adopt automation and IIoT technology to stay open with social distancing practices or staff shortages. The pandemic sped up the digital transformation in many manufacturing settings, further leveraging the industrial Ethernet market.

Read more about the history of Ethernet in 'Single Pair Ethernet: The Future of Industrial Communication'.

Industrial Ethernet is only expected to continue its growth pattern and many companies are adapting to new and unique technology. If you have any questions on the various types of industrial Ethernet technology, please contact us for assistance.